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Very good read here: http://www.caseyresearch.com/displayGsd.php

 

Everyone should read these free newsletters.

 

Quote I Like:

On every continent, and in every epoch, the peoples who have excelled in creating wealth have been the victims of some of society's greatest brutalities. - George Gilder

 

So what's it going to be? How will this current situation in both gold and silver resolve itself? If I was betting a dollar, I'd say that the organized crime figures in the bullion banks and the U.S. government will probably win out in the very short-term... but one of these days either world events, or supply and demand will catch up with them... and they'll get buried.

 

That day can't come soon enough for me, and it's my bet that we're close enough to the end that I'm not going to risk being caught out of position. That's why I'm "all in"... and intend on staying that way for the foreseeable future.

 

I hope you have a great weekend and I'll see you here on Saturday morning.

 

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Very good read here: http://www.caseyresearch.com/displayGsd.php

 

Everyone should read these free newsletters.

 

Quote I Like:

On every continent, and in every epoch, the peoples who have excelled in creating wealth have been the victims of some of society's greatest brutalities. - George Gilder

 

So what's it going to be? How will this current situation in both gold and silver resolve itself? If I was betting a dollar, I'd say that the organized crime figures in the bullion banks and the U.S. government will probably win out in the very short-term... but one of these days either world events, or supply and demand will catch up with them... and they'll get buried.

 

That day can't come soon enough for me, and it's my bet that we're close enough to the end that I'm not going to risk being caught out of position. That's why I'm "all in"... and intend on staying that way for the foreseeable future.

 

I hope you have a great weekend and I'll see you here on Saturday morning.

Have been reading Ed's Gold & Silver daily for around 2 months now, very insightful. Would recommend all goldbugs on here to subscribe (free).

 

 

 

 

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That smackdown registered strongly in $ & €, but hardly at all in £.

 

I'm sure there is a simple explanation?

Turdling is losing strength again. $1.645 this morning now $1.629.

 

 

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Turdling is losing strength again. $1.645 this morning now $1.629.

 

Sure, but the drop was so dramatic & instantaneous in the other two I'd have thought it would still show because currency falls tend not to vertical, even for the mighty pound.

 

I was looking at BV charts, maybe that explains it :)

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It is striking that GOLD IS NOT RISING AT ALL THESE LAST 6 MONTHS in most currencies.

 

http://www.kitco.com/gold_currency/charts.htm?USD (click 'Hard Currencies' and '5 years')

 

So all we are seeing this year is a steady devaluation of GBP and USD - the two places where QE is in full force

I'm not sure which chart/time period you are looking at

 

5 years? 6 months? Year to date (financial? Calendar?)?

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It is striking that GOLD IS NOT RISING AT ALL THESE LAST 6 MONTHS in most currencies.

 

http://www.kitco.com/gold_currency/charts.htm?USD (click 'Hard Currencies' and '5 years')

 

So all we are seeing this year is a steady devaluation of GBP and USD - the two places where QE is in full force

Thanks for the link. I used to check this chart quite a bit but I got a new computer and haven't been able to get the javascript link on their homepage to work since.

 

It's amazing how the truth is revealed when you compare prices to gold, whether it's oil, stock indexes, currencies or whatever. This raises the question of whether there is a dollar carry trade or was Thursday's low the bottom. http://www.bloomberg.com/apps/news?pid=206...id=apUH.Ybqzwh8

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It is striking that GOLD IS NOT RISING AT ALL THESE LAST 6 MONTHS in most currencies.

...

 

Why are you looking at the 5 year chart and commenting on the last 6 months? Why not click the 6 months chart?

 

...

So all we are seeing this year is a steady devaluation of GBP and USD - the two places where QE is in full force

YoY gold is up in all the currencies on the chart

YTD (from Jan 09 Line on year chart) Gold seems to be up in all the currencies too

Financial year (first week in April Line on 6 months chart) Gold is up in all the currencies again, maybe around the same in GBP and down a touch in CAD.

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A little birdie has told me that Approximity will update these charts regularly from now on.

 

http://gold.approximity.com/gold-silver_watch.html

A possible medium term scenario for the EURO and gold.

Gold-EUR_Scatter_LOG_GUESS.png

 

In the absence of hyperinflation, a repeat of the stagflationary environment of the 1970s could lead to a scenario similar to the one shown below. However, at Approximity some believe that the DJIA:Gold ratio will dip below 1:1 over the course of this crisis.

DJIA-Gold_Scatter_LOG_GUESS.png

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Wow, I wake up on Saturday morning, and gold has been really whacked down to......to......

 

oh $1006.

 

Still ABOVE 1000 :lol: :lol: :lol:

 

4 digit US$ gold is starting to be a habit :D

 

Eric makes an interesting point about the net long % of open interest:

 

http://jsmineset.com/2009/09/18/cot-gold-comparison/

 

If you can't read his chart, I've blown it up here:

http://www.neuralnetwriter.cylo42.com/node/1882

 

I feel sorry for the Chinese, caught as they are with so many US Dollars, so I did a quick calculation to help them out.

How many of their $2 trillion should they convert to gold so that the rise of gold price offsets the devaluing US$?

 

I've assumed a US$ devaluation of 50% and GoldUS$ going to 10,000.

 

The simplistic answer is they just need to buy $200 Billion of gold or at today's price 100 million oz (3,100 tonnes).

 

Although they will obviously diversify into other commodities, they have more gold buying to do :D

 

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Dear Comrades In Golden Arms,

 

Good MOPE pre G20 event with gold above $1000.

 

1. IMF sales will never touch the gold market, but be absorbed by central banks seeking to diversify out of dollars.

 

2. IMF sales in the 1970s that had a market relationship via auction tranche sales took place in the conditions of a rising market.

 

3. IMF sales in the 1970s were credited with providing the means for major interests to enter the market in the 1970s by buying singular blocks of physical gold at one net price.

 

4. The value in dollars of IMF gold sales is peanuts at $13 billion when compared to at least $500 billion dollars remaining in Chinese reserves that are seeking diversification.

 

5. There is absolutely nothing new here from the July 27th IMF announcement as this vote after the US agreed in July was a foregone conclusion.

 

6. This is a repeat of the July 2009 releases which you know certainly did not stand in gold's way. This won't either.

 

To the gold long this is well timed pre-G20 MOPE that will not injure the trend of gold in any sense, nor will it improve the dollar's weak position.

 

If you have questions for me on this or any other subject this weekend I have a special email address for you to send in questions. That email address is jimsinclair108@gmail.com

 

The above email address is for this weekend only.

 

Regards,

Jim

 

IMF Board Approves Sale of 403.3 Metric Tons of Gold

By Sandrine Rastello

 

Sept. 18 (Bloomberg) -- The International Monetary Fund's executive board approved gold sales of 403.3 metric tons valued at about $13 billion and pledged to avoid disrupting the market with the transactions.

 

The IMF said it would "stand ready to sell gold directly to central banks." The sales could also be conducted in the open market in a "phased manner" over time, the Washington- based lender said in an e-mailed statement today.

 

"These sales will be conducted in a responsible and transparent manner that avoids disruption of the gold market," IMF Managing Director Dominique Strauss-Kahnsaid in the statement.

 

The IMF board last year endorsed the quantity to be sold, which accounts for one-eighth of the IMF's total gold stockpile, as part of a plan to shore up its finances. The sale will also increase the agency's ability to lend at reduced rates to low- income countries. The IMF is the world's third-largest holder of gold reserves.

 

Gold futures for December delivery fell $3.20, or 0.3 percent, to $1,010.30 an ounce today on the New York Mercantile Exchange's Comex division.

 

The U.S. Congress in June approved legislation that permits the American representatives at the IMF to agree to the sale.

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...

The simplistic answer is they just need to buy $200 Billion of gold or at today's price 100 million oz (3,100 tonnes).

 

Although they will obviously diversify into other commodities, they have more gold buying to do :D

And 400 tonnes has already been orgasnised. Is the IMF audited so we'll know the price they got?

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An oxymoron if ever I saw one. Assets that are unproductive are not assets. An investment either generates future economic benefit , or it doesn't.

What about an asset which preserves wealth/ capital? You couldn't really call it productive, could you?

 

But then perhaps an asset that preserves wealth is not really a [productive] investment... of the sort people seem only too keen to start buying again.

 

In this sense, I do not see gold as an investment. Investment works well in periods of growth, but no so well in periods of contraction/ wealth destruction. It really depends on whether you believe in recovery and reflation or not.

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I think it would be wise to ask folks that lived (or are still living!) though Weimar Germany, Argentina, Iceland, Pre/Post Berlin Wall Russia, Zimbabwe etc etc - whether they consider/ed gold to be a 'good' investment! Unfortunately many are dead or their wealth destroyed because they had no gold. In real terms it has increased from 250 to 1000 in 9 years or less - not a bad 'return' at all for a sit back and fugheddaboudit it strategy, and no-one has been wiped out by gold (unless on margin) - in contrast, many many folks have been wiped out in their 401ks, insurance policies, pension policies, equities (including some gold stocks), not to mention wealth destruction by simple currency debasement - I've been reading a lot more lately about the Argentina experience, as that is (at a minimum) probably what we are facing - atm lockdowns, bank holidays, wealth destruction for many years. Cgnao was and still is exactly right.

Read my post again and then in the context of the previous one. You will see I am not negative on gold. ;)

 

It is the go to currency to preserve capital in an era of wealth destruction. More than a mere "investment".

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